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Insurance Prices Soaring, A.I.G. Chief Says

Maurice R. Greenberg, the chief executive of the American International Group, said yesterday that insurance prices were rising ''by leaps and bounds'' in the aftermath of the terrorist attacks on the World Trade Center and the Pentagon.

Mr. Greenberg, whose company is one of the world's largest insurers, said that prices for some kinds of commercial insurance were doubling, up from expected increases of 20 percent to 60 percent as the industry emerged from a long period of cutthroat pricing. Other experts say the cost of coverage for airlines has increased even more, as much as fivefold.

In a conference call with investors and journalists, Mr. Greenberg increased his estimate of losses for A.I.G. in the attacks to $800 million, up from $500 million. He said that third-quarter earnings would also be hurt by a $1.36 billion charge in connection with A.I.G.'s acquisition of American General, the big Texas life insurer.

Even so, he said, A.I.G. would turn a profit of several hundred million dollars for the quarter. Then, he said, the company's earnings would pick up to their historic pattern of more than 20 percent annual growth.

A.I.G. is now expected to earn 16 cents a share, down from an expected 75 cents as a result of the attacks and a one-time charge for the merger, according to Alice Schroeder, an analyst at Morgan Stanley.

Mr. Greenberg, who led industry efforts to provide coverage for airlines when others refused to do so and who has been lobbying Washington for government support in coping with any future terrorist attacks, painted a bright picture for his company.

''The opportunities for us are enormous,'' he said.

A.I.G. is a leader in commercial coverage and auto and life insurance. ''There is a greater awareness of a need for coverage in the whole country, for life insurance, accident insurance or whatever else,'' Mr. Greenberg said. ''It's a global opportunity. It's not just in the United States, but rates are rising throughout the world. So our business looks quite good going forward.''

In contrast to A.I.G., which has $50 billion in capital, Mr. Greenberg said, some insurers were weakened by the attacks, which are expected to cost the industry at least $40 billion. ''I can't tell you about our competitors,'' he said, ''but there is no shortage of business to write and we're going to do everything we can to write it.''

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Asked if he would buy any companies that got into trouble as a result of the attacks, Mr. Greenberg said: ''We've always been opportunistic. When we see opportunities, we will never change. At A.I.G., it's part of our culture.''

Referring to the industry's effort to persuade the federal government to take responsibility for high levels of losses from any future terrorist attacks, Mr. Greenberg said: ''The administration is sympathetic and supportive.''

Mr. Greenberg said that the A.I.G. subsidiary that leases aircraft to airlines was also doing well. ''All our planes are leased,'' Mr. Greenberg said, ''and I expected them to continue to be so.''

He said some of the biggest uncertainties about the cost of the attacks centered on coverages for lost income and extra expenses for businesses.

He said a dispute had been developing over coverage on the trade center and the two aircraft that plowed into the towers. Larry A. Silverstein, who holds the lease on the towers, has said the attack should be regarded as two incidents because two planes were involved. But insurers contend that it was all one attack. If it is determined that, under the insurance contract, it was two incidents rather than one, the insurers will have to pay double on some coverages.

''Obviously,'' Mr. Greenberg said, ''there is going to be some litigation on that.''